If you're on the lookout for some FPS action on your iPhone or iPod Touch, make sure to check the App Store and look for Wolfenstein 3D Classic Lite. id Software's just recently released that baby on the App Store, and the best thing about it is it's free.
Wolfenstein 3D Classic is an iPhone adaptation of Wolfenstein 3D, the game generally considered to be the loins where FPS games sprang from. The iPhone version features four different control layouts and also supports tilt control for either movement or turning.
This free version will let gamers play through the first three missions of Episode 1. There doesn't seem to be any multiplayer, but if you can wait then better sit tight for id's upcoming Doom port. That one has multiplayer support.
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